The impact of e-business on software

By Staff -- Modern Materials Handling, 2/1/2001

Now that companies are realizing that e-business is less about a technology shift and more about a business shift, they are becoming increasingly ready to make their move into it.

As a result, Boston-based AMR Research makes the following predictions:

e-business will give SCM (supply chain management) software a boost as total revenue grows 45% in 2001 to $7.8 billion.

In addition, the SCP (supply chain planning) and SCE (supply chain execution) segments will grow equally at 45% to $4.4 billion and $3.4 billion, respectively.

Newly defined SCEM (supply chain event management) software will take off in 2001, as companies focus on the velocity and agility of their supply chains.

SCEM software allows a company to respond to unplanned events on an exception basis. It consists of a set of integrated software functionality that supports five business processes-monitor, notify, simulate, control, and measure supply chain activities.

SCEM will be extremely important as supply chains move from a single enterprise controlling multiple processes to multiple enterprises controlling a single process, distributed across trading partners.

Many new and existing software vendors are adding supply chain visibility and alert messaging as a means of offering SCEM.

AMR predicts as vendors create more e-business products, SCEM will become a standard aspect to supply chain software packages. Standalone sales of SCEM software are expected to top $100 million in 2001, with rapid growth expected for the next 3 years.